A FICO® ScoreÎ of 728 falls within a span of scores, from 670 to 739, that are categorized as Good. The average U.S. FICO® Score, 714, falls within the Good range. A large number of U.S. lenders consider consumers with Good FICO® Scores “acceptable” borrowers, which means they consider you eligible for a broad variety of credit products, although they may not charge you the lowest-available interest rates or extend you their most selective product offers.
Approximately 9% of consumers with Good FICO® Scores are likely to become seriously delinquent in the future.
Buying a car is an exciting experience, but also a major financial decision that requires careful planning With so many factors to consider, one of the most important is your credit score This three-digit number gives lenders an idea of how likely you are to repay a loan, which affects the loan terms you’ll be offered. So is a credit score of 728 good enough to get approved for competitive auto financing?
What Credit Score Do Most Lenders Want?
While there is no universal minimum credit score to buy a car, lenders generally prefer scores of 661 or higher for the best rates. According to Experian, a target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 6.70% or better, or a used-car loan around 9.06% or lower.
Here’s a breakdown of average new and used car loan rates by credit score range:
- Superprime (781-850): 5.18%
- Prime (661-780): 6.70%
- Nonprime (601-660): 9.83%
- Subprime (501-600): 13.22%
- Deep Subprime (300-500): 15.81%
So while a 728 credit score falls within the prime range it’s on the lower end. You can probably get approved, but may not quite qualify for the very best rates.
Factors That Influence Auto Loan Rates
While your credit score is important, lenders also consider other factors when deciding loan terms:
- Down payment amount: The more you put down, the less risk for the lender. Ideally 20% or more.
- Loan term: Longer terms mean smaller monthly payments but more interest paid over time.
- Vehicle age and mileage: Newer cars with low miles tend to qualify for better rates.
- Income and debt-to-income ratio: Lenders want to see you can afford the payments.
- Co-signer: Adding a co-signer with better credit may help you qualify for a lower rate.
So even with a 728 credit score, a large down payment and other positive factors could potentially score you a rate on the lower end.
Strategies to Get the Best Rate with a 728 Credit Score
If your score is 728 and you’re buying a car soon, here are some tips to possibly get approved for the lowest rate:
-
Shop around: Compare rate offers from multiple lenders. Even a small rate difference can save thousands over the loan term.
-
Get pre-qualified: Many lenders allow you to get pre-qualified to view rates you may qualify for before formally applying. Won’t affect your credit score.
-
Consider a shorter loan term: Opting for a 36-month loan instead of 60 months will mean higher monthly payments but significantly less interest.
-
Make a large down payment: Putting down 20% or more gives you immediate equity in the car and shows the lender you’re financially committed.
-
Pay down debts: Lowering credit card balances and other debts before applying can help bump up your score.
-
Add a co-signer: If you have a family member or partner with better credit, see if they’re willing to co-sign the loan with you.
-
Improve your credit: If you have time before car shopping, work on increasing your credit score to get the best terms.
How to Raise Your Credit Score for an Auto Loan
While a credit score of 728 is decent, climbing into the prime or superprime ranges can make a big difference in loan rates and approval odds. Here are some tips for boosting your credit score:
-
Pay all bills on time. Payment history is the biggest factor in your scores. Set up autopay or reminders to avoid late payments.
-
Lower credit utilization. Try to keep balances below 30% of your credit limits. Paying down cards and loans can help.
-
Avoid new credit applications. Each application causes a hard inquiry, which can ding your scores a bit. Limit new requests.
-
Correct errors on credit reports. Mistakes can unfairly lower your scores. Dispute any inaccuracies with the credit bureaus.
-
Build credit history. If needed, get a secured card or credit-builder loan to demonstrate responsible usage over time.
-
Become an authorized user. Ask a family member with good credit to add you as an authorized user on a longstanding account.
-
Monitor your credit. Stay on top of your scores and reports. Sign up for free monitoring services.
With a disciplined approach, you can likely increase your credit score significantly within 6-12 months. The higher your score, the better your auto financing offers will be.
The Takeaway
A credit score of 728 is considered good or fair by most lenders’ standards. While you can likely get approved for an auto loan with a 728 credit score, you may not get rock bottom interest rates or the most favorable terms. Scores of 661 or higher have the best shot at prime borrowing rates.
There are things you can do to boost your chances, like making a large down payment, adding a co-signer, or taking out a shorter loan term. And building your credit score to get into the prime credit range can make a big impact on the loan offers you can qualify for.
Check your credit scores, research lenders, and take steps to improve your credit position. With some work, you can potentially put yourself in a place to get approved for the very best auto financing rates and terms.
How to improve your 728 Credit Score
A FICO® Score of 728 provides access to a broad array of loans and credit card products, but increasing your score can increase your odds of approval for an even greater number, at more affordable lending terms.
Additionally, because a 728 FICO® Score is on the lower end of the Good range, youll probably want to manage your score carefully to prevent dropping into the more restrictive Fair credit score range (580 to 669).
The best way to determine how to improve your credit score is to check your FICO® Score. Along with your score, youll receive information about ways you can boost your score, based on specific information in your credit file. Youll find some good general score-improvement tips here.
How to build up your credit score
Your FICO® Score is solid, and you have reasonably good odds of qualifying for a wide variety of loans. But if you can improve your credit score and eventually reach the Very Good (740-799) or Exceptional (800-850) credit-score ranges, you may become eligible for better interest rates that can save you thousands of dollars in interest over the life of your loans. Here are few steps you can take to begin boosting your credit scores.
Check your FICO ScoreFICO® regularly. Tracking your FICO® Score can provide good feedback as you work to build up your score. Recognize that occasional dips in score are par for the course, and watch for steady upward progress as you maintain good credit habits. To automate the process, you may want to consider a credit-monitoring service. You also may want to look into an identity theft-protection service that can flag suspicious activity on your credit reports.
Avoid high credit utilization rates. High credit utilization, or debt usage. Try to keep your utilization across all your accounts below about 30% to avoid lowering your score.
Try to establish a solid credit mix. The FICO® credit-scoring model tends to favor users with multiple credit accounts, and a blend of different types of credit, including installment loans like mortgages or auto loans and revolving credit such as credit cards and some home-equity loans. This doesnt mean you should take on debt you dont need, but it suggests you shouldnt be shy about prudent borrowing as appropriate.
Make sure you pay your bills on time. Avoiding late payments and bringing overdue accounts up to date are among the best things anyone can do to increase credit scores. Establish a system and stick to it. Whether its automated tools such as smartphone reminders and automatic bill-payment services or sticky notes and paper calendars, find a method that works for you. Once youve stuck with it for six months or so, youll find yourself remembering without being nagged (but keep the reminders around anyway, just in case).
What Credit Score Do Car Dealerships Use? (Which Credit Bureau Is Most Used for Auto Loans?)
FAQ
Can I buy a car with a 728 credit score?
There is no minimum credit score required to buy a car, but most lenders have minimum requirements for financing. Most borrowers need a FICO score of at least 661 to get a competitive rate on an auto loan.
What can you do with a 728 credit score?
A FICO® Score of 728 provides access to a broad array of loans and credit card products, but increasing your score can increase your odds of approval for an even greater number, at more affordable lending terms.
What credit score is needed for a $30,000 car loan?
What loan can I get with a 728 credit score?
Unsecured Personal Loans: These loans do not require collateral and are based solely on your creditworthiness. With a credit score of 728, you are more likely to qualify for unsecured personal loans with favorable terms.